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Strategy by Business Units: truck

Truck Tyre market

The Truck Tyre market is expected to grow at the average rate of 2.1% per year between 2013 and 2017, going from the 141 million pieces of 2013 to 153 million pieces in 2017. Pirelli key markets – South America and MEA – are due to outgrow the overall average with an average rate of 3.7% and 2.4%, respectively.

Pirelli Positioning

In the Truck market, Pirelli is by far the leader in South America and North Africa and ranks among the major players in the Middle East.

A selective geographic positioning, the offering of technologically advanced products with the new 01 Series and 100% low-cost production capacity allow Pirelli Industrial Business to achieve a profitability level among the highest in the industry, with an estimated Ebit margin greater than 13% in 2013.

Pirelli Strategy

Pirelli aims at consolidating its leadership in:

LatAm: Through the introduction of 01 Series, a renewed offering of fleet services and a wider market coverage, to be achieved by expanding the distribution network

MEA: Through an extension of the product portfolio, the introduction of Pirelli Fleet Solutions, the development of the sales force and a higher integration with dealers

In Europe, a strong improvement of profitability is envisaged due to the spreading of 01 Series and the use of low-cost sources for the whole production effort.

Pirelli target in Asia Pacific is to improve its positioning by co-operating with new distributors, extending the retail network, saturating plants and search for a partnership.

Levers for value creation:

On-going technological innovation, with the introduction of 11 new product lines

Construction of a global production platform locally, adaptable to customers’ needs

Introduction of solutions for cost control and fleet monitoring, such as Cyber Fleet

Lean organization and execution of an industrial efficiency program worth approximately 40 €/mln between 2014 and 2017